Taxes - include or not

[Jeremy583]

In my property area the government requires a 12% tourism tax .  Some of the listings show this in the pricing breakdown as a separate line item ( Occupancy taxes and fees) whereas others do not show it. In both cases it would not affect the overall price shown int he search results. My question is: does showing the tax line separately have a negative effect on booking conversion rates since the user can see added costs whereas if those who don't show it do not have this line. In each case the overall rate is unchanged as it is included regardless of whether it is shown separately or not. Hope that makes sense and someone knows the answer

[Kenneth12]

I'm not sure we have data on conversion rate-- but I personally would be more likely to judge price via a pre-tax rate.

Alas,  in Chicago, 28% is collected by ABB,  regardless of whether you are exempt ...

[Fred13]

I am no fan of showing a list of separate charges that may give the impression of  'nickel & diming', so in my case with a 2.7% business tax + 9.5% lodging tax, I set my price to cover both (roughly 10%) and then do not have to explain anything to the guests.

[Lisa723]

I find bookkeeping easier if it's separated, since taxes collected are not themselves taxable.

[Fred13]

Hey @Lisa723 you will get a kick about this one: In Belize they calculate everything with a 'tax upon tax' approach; yes, they tax on the absolute amount including tax, so in essence they get 10% extra (with my particular case) with this trick. 

[Lisa723]

@Fred13 good grief.

[Debra300]

@Fred13,

It must be a Caribbean way of tax calculation, because in St. Lucia it's very similar to Belize.  Whenever I have to pay duties on imported shipment, it's an import duty-20%, then a 6% service charge on the price of goods + import duty, followed by a 12.5% VAT on the goods, duty and service charge.  I've stated to Customs that they are charging tax on tax, and they just give me the look, "Yankee get out of here with that noise."